Editorial: Report offers warning to local governments

A few weeks ago, New York's comptroller came to Poughkeepsie and released a report pointing to the unsettling state of the city's financial situation.

But Comptroller Thomas DiNapoli was careful to say the city was far from alone.

The comptroller's latest findings demonstrate this - in spades.

The state's top auditor says two dozen communities across the state are fiscally stressed, taking into account such benchmarks as how much money they have in reserve accounts and whether they have had operating deficits of late.

Neither the City of Poughkeepsie nor any other government in Dutchess County made this list, though the comptroller said some, including the city, were listed as "under review" and could face a warning from his office.

Obviously, though, every level of government should understand the gravity of the situation by now.

The recession has taken its tolls, and the recovery has been stubbornly slow.

Local governments in New York have been under pressure as costs for pensions and health care have skyrocketed while tax revenue has stagnated.

They have called on the state to decrease the number of unfunded yet mandated programs, but the state has not done nearly enough about this issue, despite repeated promises.

The state has to be part of the solution here.

But local governments can help themselves by merging services with adjoining towns, villages and cities where possible - and by budgeting more realistically than some have done in the past few years in particular.

The Comptroller's Office has found in numerous audits that many local governments across the state have continued to overestimate tax revenues, refusing to take into account a much slower economy than before the recession. This could have potentially devastating consequences.

DiNapoli said his latest report was a response to a number of "alarming" trends among local governments auditors found. That includes some not having enough cash on hand to pay the cost of current bills, a frightful prospect that every elected official should consider.

Unfortunately, it is a situation more local governments likely will find themselves in - if they don't make the proper adjustments now.

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Email this article

Editorial: Report offers warning to local governments

A few weeks ago, New York's comptroller came to Poughkeepsie and released a report pointing to the unsettling state of the city's financial situation.